Construction Types: A Guide To Commercial Building Projects

Jul 27, 2026 | Blog

Construction types describe how a building project is categorized—by project scope, industry sector, building method, or fire-resistance classification under the International Building Code. The right construction type affects planning, materials, fire protection, scheduling, budget, and safety. Understanding these categories early helps commercial property owners make better decisions before work begins.

When clients first speak with us about a commercial construction project, one of our first priorities is understanding exactly what kind of project they are planning. The answer affects everything from permitting and design to material selection, phasing, safety, and schedule development.

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Construction types” does not mean one thing. It can describe the scope of work—new construction, renovation, or addition. It can describe the sector—residential, commercial, or industrial. It can describe how a building was built—wood framing, structural steel, reinforced concrete, or heavy timber. And it can refer to how the International Building Code classifies a building based on fire resistance and combustibility.

Each of these categories carries real consequences. A ground-up healthcare facility has different planning needs than an occupied senior living renovation, a hotel guest-room upgrade, an office build-out, an affordable housing rehabilitation, or a historic property conversion. Treating these projects as though they follow the same process is one of the most common—and costly—mistakes in commercial building construction.

This guide explains the most important construction types, what they mean in practice, and how understanding them early leads to better planning, fewer surprises, and more successful projects.

What Do Construction Types Mean For Your Project?

The phrase “construction types” may refer to more than one classification system. Before planning begins, it helps to understand which definition is being used—and why it matters.

Construction Project Types

Projects are often categorized by the work being performed:

  • New construction
  • Renovation
  • Addition or expansion
  • Commercial build-out or interior improvement
  • Adaptive reuse
  • Occupied renovation
  • Capital improvement
  • Property rehabilitation or restoration

Construction Sectors

Construction methods are also grouped by industry sector:

  • Residential construction focuses on creating living spaces for individuals and families.
  • Commercial construction includes buildings designed for business, institutional, hospitality, educational, healthcare, retail, housing, and public-service purposes.
  • Industrial construction focuses on manufacturing, processing, production, and distribution facilities.

Building Code Construction Types

The International Building Code defines five primary construction classifications: Type I, Type II, Type III, Type IV, and Type V. These building types are based on the materials used in structural components, whether those materials are combustible or noncombustible, and the required fire resistance rating of building elements including exterior walls, floors, roofs, and the primary structural frame.

A renovation is a project type. Type I through Type V is a code classification for the building itself. These concepts are related, but they are not interchangeable.

Construction Types By Project Scope

The category of work defines what planning, design, and construction management the project actually requires. Each creates different demands for permitting, existing-condition investigation, scheduling, occupant coordination, safety planning, cost estimating, and material selection.

New Building Construction

New construction is the development of a building on a prepared site. It may involve land and site evaluation, property surveys, environmental reviews, design and engineering, site preparation, excavation, foundations, structural framing, exterior walls, roof construction, mechanical and electrical and plumbing systems, fire protection, and final site work.

New construction may be appropriate when the current property cannot support the intended use, when existing structural elements would require extensive modification, or when long-term operational needs justify a purpose-built facility. Common examples include a new senior living community, a ground-up medical office, a new educational building, a hotel or restaurant development, or a multifamily affordable housing property.

Our planning for new construction projects may include site and property assessment, budget development, constructability review, building material evaluation, scheduling, design coordination, regulatory review, value engineering, risk identification, and procurement planning.

Commercial Renovation Projects

Renovation updates, repairs, modernizes, or reconfigures an existing building. Owners may renovate to modernize outdated interiors, meet accessibility requirements, replace aging systems, improve energy efficiency, correct deferred maintenance, or reposition a property.

Renovation work may uncover conditions that are not immediately visible—outdated wiring, aging plumbing, structural deterioration, water damage, hazardous materials, incomplete documentation, or previous construction that does not match original plans. At SCIC, we place significant emphasis on preconstruction and existing-condition review because the quality of the planning directly affects the quality of the renovation. Property surveys and assessments help our team identify risks before pricing and scheduling are finalized.

Occupied Renovations: A Specialized Construction Challenge

An occupied renovation takes place while residents, employees, patients, students, guests, tenants, or customers continue using the property. This category is common in senior living communities, healthcare facilities, schools and universities, hotels, affordable housing properties, offices, restaurants, and retail stores.

Occupancy changes the entire construction plan. An occupied project may require multiple construction phases, temporary access routes, dust and debris barriers, noise controls, infection-control procedures, restricted work hours, temporary utility shutdown plans, and frequent communication with facility operations.

We specialize in occupied renovations because successful construction is not only measured by what we build. It is also measured by how effectively we protect the people and operations surrounding the work. Our team evaluates when a facility is busiest, which entrances must remain open, which utilities are essential, and how emergency access will be maintained throughout the project.

Building Additions And Expansions

An addition is new square footage connected to an existing building. Common commercial addition projects include new resident wings, expanded medical spaces, classroom additions, hotel room expansions, restaurant dining areas, office extensions, and community rooms.

Connecting new and existing construction requires careful coordination of structural systems, floor elevations, roof construction, exterior walls, fire-rated separations, mechanical systems, electrical service, and plumbing. The existing building must be evaluated to determine whether it can support the proposed addition. Owners should also account for temporary closures, utility connections, weather exposure, structural modifications, changes to occupant load, and updated fire protection requirements.

Commercial Build-Outs And Interior Improvements

A commercial build-out is the process of completing or modifying an interior space for a specific business, tenant, or operational use. Common projects include office build-outs, retail stores, restaurants, medical offices, educational spaces, and hospitality amenities.

A build-out may include interior walls and partitions, flooring, ceilings, lighting, electrical systems, plumbing, HVAC modifications, millwork, fire protection, technology infrastructure, and branding installation. Even a visually focused interior project can affect occupant load, exit routes, accessibility, fire resistance, sprinkler coverage, and mechanical performance. Our team evaluates both the desired appearance and the building systems needed to support the finished space.

Adaptive Reuse Construction Projects

Adaptive reuse converts an existing property to a new purpose. Examples include converting an office building into housing, turning a historic structure into a hotel, repositioning a school or institutional building, or converting an older commercial property into mixed-use space.

Potential advantages include reusing an existing structure, preserving architectural character, reducing demolition waste, revitalizing underused properties, and supporting sustainability goals. However, changing a building’s use may trigger new regulatory requirements even when the same construction type remains in place. The building may need significant changes related to structural integrity, fire resistance, accessibility, mechanical systems, plumbing capacity, electrical service, emergency exits, and interior layout.

Historic adaptive reuse adds additional considerations, including preservation reviews, sensitive material removal, custom fabrication, matching original finishes, structural reinforcement, and coordination with preservation authorities. We help clients balance preservation, safety, performance, and long-term use so an older property can serve a practical new purpose without losing the qualities that make it distinctive.

Capital Improvements And Property Rehabilitation

Capital improvements are projects intended to preserve, repair, modernize, or increase the long-term value of a property. Examples include roof replacement, window replacement, exterior repairs, mechanical system upgrades, electrical improvements, accessibility renovations, fire protection upgrades, and building-envelope improvements.

These projects may be smaller than a full renovation but still require detailed scheduling, existing-condition review, occupant communication, regulatory compliance, budget prioritization, and phasing across multiple buildings or locations. Our property survey and assessment services help capital planning teams prioritize investments and understand current building conditions before committing to a scope.

Construction Methods By Industry Sector

Construction projects are categorized into three primary sectors, each requiring specific expertise, materials, regulations, and project management practices.

Residential Building Construction

Residential construction focuses on creating living spaces for individuals and families. Residential buildings primarily use wood framing, masonry materials, concrete foundations, gypsum board, and roofing systems appropriate to local climate. Type V construction is commonly associated with single-family residential homes and other wood-framed structures.

Affordable housing and multifamily construction may involve residential occupancy while still requiring the scale, coordination, and project management associated with commercial construction. Factors that influence residential projects include budget, climate, local building code, square footage, energy efficiency, sustainability goals, and material availability.

Commercial Building Construction

Commercial construction encompasses properties designed for businesses, institutions, housing operators, and public services. Commercial buildings often use structural steel, reinforced concrete, precast panels, concrete block, noncombustible materials, and fire-rated assemblies, along with more complex mechanical and electrical systems. Reinforced concrete construction provides strength and durability, making it especially useful for multi-story buildings.

Commercial projects require close attention to occupant load, accessibility, fire protection, egress, structural components, business continuity, and regulatory requirements. The range of building types is wide—senior living communities, healthcare facilities, schools, hotels, restaurants, offices, retail buildings, and affordable housing developments all fall within this sector.

Industrial Building Construction

Industrial construction focuses on manufacturing, processing, production, storage, and distribution facilities. Industrial buildings require heavy-duty structural steel, specialized piping, large mechanical systems, process equipment, high electrical capacity, reinforced floor construction, specialized ventilation, fire suppression, and hazardous-material controls. Industrial construction is deeply involved with the client’s operational process, equipment layout, utility demands, and safety requirements.

Our primary focus at SCIC is commercial and institutional work. Understanding how industrial construction differs from commercial and residential helps our clients recognize the full range of project requirements across sectors.

Building Code Construction Types Under The International Building Code

The International Building Code defines five construction types based on the fire resistance and combustibility of major building elements. These classifications consider the primary structural frame, bearing walls, exterior walls, interior walls, floor construction, and roof construction.

The specific code edition and local amendments must always be reviewed by the building designer, architects, engineers, and code officials.

Type I Construction: The Most Fire Resistive Building Type

Type I construction generally has the highest fire resistance ratings of all five building types. It uses noncombustible materials such as reinforced concrete, structural steel, precast concrete, and protected steel assemblies.

Type I buildings are commonly associated with high-rise buildings, large institutional properties, hospitals, and other buildings with significant occupant loads.

Type I-A and Type I-B: Type I-A requires a three-hour fire resistance rating for exterior walls. Type I-B requires a two-hour fire resistance rating for structural frames. Type I construction offers a higher level of fire protection than the other construction types. Fire resistance ratings may vary by structural element and should be confirmed using the applicable building code.

Type I construction may involve higher material costs, more complex structural systems, fireproofing requirements, longer installation timelines, and greater design coordination. However, it provides strong durability and structural integrity over the long term.

Type II Construction And II-B Commercial Buildings

Type II construction uses noncombustible materials such as steel and concrete but generally has lower fire resistance requirements than Type I. It is often used for strip malls, retail buildings, warehouses, one-story commercial buildings, and office properties.

Type II-A requires a minimum one-hour fire resistance rating for applicable building elements, achieved through fire-resistant assemblies, protected structural components, gypsum board systems, or spray-applied fire protection.

Type II-B, sometimes written as II B, generally has no required fire resistance rating for major structural elements. The building still uses noncombustible materials, and other fire protection and life-safety requirements still apply. The absence of a required structural fire resistance rating does not eliminate the need for sprinklers, alarms, safe exits, or code compliance.

Compared to Type I, Type II construction offers less fire protection. However, it provides efficient construction, flexible commercial layouts, economical structural systems, and faster building assembly—appropriate for many low-rise commercial properties.

Type III Construction: Also Called Ordinary Construction

Type III construction is commonly called ordinary construction. It generally includes noncombustible exterior walls—such as brick, masonry, or concrete block—combined with combustible interior elements, including wood-framed or otherwise combustible interior structures where permitted.

Type III buildings are often found in mid-rise buildings, older commercial districts, mixed-use properties, apartments, main-street retail buildings, and historic commercial structures.

One goal of Type III construction is to help contain a fire within the building’s exterior wall assemblies. However, combustible interior elements and concealed spaces can contribute to spreading fire if they are not properly protected.

Type III-A is a protected version of Type III construction with required fire resistance ratings for certain building elements. The design team must confirm exterior wall requirements, interior bearing wall ratings, floor and roof requirements, allowable height and square footage, occupant load, and sprinkler requirements based on the applicable building code.

Type IV Construction And Heavy Timber Buildings

Type IV construction traditionally uses heavy timber and solid wood structural elements. Type IV heavy timber construction may include large dimensional lumber, solid timber, laminated wood, cross laminated timber, and noncombustible exterior walls.

Traditional Type IV construction uses minimum member sizes, including columns that may be at least eight inches in dimension. Exact size requirements depend on the structural element, the applicable Type IV subtype, the current building code, and the building design.

Fire resistance of heavy timber: Large timber members behave differently from light wood framing. When exposed to fire, the exterior develops a char layer that can slow the rate of burning, while the interior portion of the member may retain structural integrity for a period of time. The larger member size contributes to fire resistance.

Traditional Type IV construction generally limits or prohibits concealed spaces within certain interior elements. Exposed wood structural elements make it easier to inspect the structure and reduce concealed paths where fire could spread.

Type IV buildings may use exterior walls constructed from masonry, concrete, or other noncombustible materials.

Cross laminated timber and modern building construction: Cross laminated timber and other mass-timber products are growing in use across commercial building construction. Potential advantages include off-site fabrication, faster assembly, reduced material waste, exposed wood aesthetics, lower structural weight, and sustainability opportunities. Modern mass-timber construction includes additional Type IV subcategories and technical requirements that should be reviewed under the current building code.

Type V Construction And Type V-B Buildings

Type V construction allows combustible building materials and commonly includes wood-framed construction. Type V buildings may include wood-framed exterior walls, wood floor construction, wood roof construction, exposed wood, gypsum board protection, and combustible structural elements.

Type V construction is commonly used for single-family residential homes, small multifamily properties, low-rise residential structures, and smaller commercial buildings where permitted.

Type V-A includes protected combustible construction with required fire resistance ratings. Type V-B, also written as V B, generally does not require a fire resistance rating for the primary structural frame or other major structural components. Type V-B is considered one of the least stringent construction classifications in terms of structural fire resistance.

Type V is often considered the most economical building type because wood-framed systems are widely available, fast to install, familiar to contractors, easy to modify, and less expensive than steel or reinforced concrete systems. However, Type V construction may also involve lower allowable building heights, smaller allowable areas, greater concerns about spreading fire, and additional sprinkler or separation requirements.

Fire Resistance Ratings And Building Elements

A fire resistance rating indicates how long a tested assembly can maintain certain performance criteria during fire exposure. Ratings may apply to exterior walls, interior bearing walls, the primary structural frame, floor construction, roof construction, fire barriers, fire partitions, and shaft enclosures.

Fire resistance is not the same as fireproof. Fire-resistant construction is designed to resist fire for a tested period—not to be completely immune. Fire resistance helps slow fire’s spread, protect structural integrity, provide more time for evacuation, support firefighter operations, and limit damage to adjacent areas.

Fire resistance may be achieved through poured concrete, reinforced concrete, concrete block, gypsum board, protected steel, masonry, and tested wall assemblies. Individual materials may also carry a flame spread index, but the complete tested assembly determines the required fire resistance rating.

How Exterior Walls Affect The Construction Type

Exterior walls play an important role in building classification and fire safety. Exterior wall requirements may be affected by construction type, distance from property lines, distance from nearby buildings, occupancy classification, building height, square footage, openings, and combustible materials.

Noncombustible exterior walls are commonly found in Type I, Type II, Type III, and some Type IV buildings. The construction type alone does not answer every exterior wall question. The design team must also evaluate fire separation distance, openings, and required ratings.

Prefabrication And Modular Building Construction

Construction types may also refer to how building elements are manufactured and assembled.

Prefabrication involves producing building elements in a controlled off-site environment before transporting them to the construction site. Potential benefits include faster installation, reduced construction waste, better quality control, less on-site labor, improved schedule predictability, and reduced disruption in occupied environments. Prefabricated elements may include wall panels, bathroom pods, mechanical assemblies, structural components, and precast concrete elements.

Modular construction involves producing larger building components or complete room modules off-site, then transporting and assembling them at the project location. Potential advantages include quicker assembly, parallel site and building work, reduced weather delays, consistent production, and less on-site waste. Modular construction still requires careful planning for transportation, foundations, utility connections, structural integration, building-code compliance, fire protection, and crane operations.

Questions Owners Should Ask Before Selecting A Construction Type

Before committing to a project approach, owners should work through a structured set of questions:

  • Are we building new or modifying an existing property?
  • Will the building remain occupied during construction?
  • What is the current building-code construction type?
  • Will the new project change the building’s occupancy or occupant load?
  • What fire resistance ratings apply?
  • Which structural components can remain?
  • What exterior wall requirements must be addressed?
  • Will the project involve combustible or noncombustible materials?
  • Are there concealed conditions that need to be investigated?
  • What building materials best support the budget and schedule?
  • Does the property require phased construction?
  • How will the project affect daily operations?
  • Are prefabrication or modular construction practical options?
  • What sustainability goals should influence the design?
  • What local building-code amendments apply?
  • What property surveys or assessments should be completed?
  • How will the construction manager coordinate the design, budget, and schedule?

Common Mistakes When Planning Commercial Building Construction

Choosing A Project Approach Before Assessing The Property

Owners sometimes commit to a design before confirming structural, mechanical, or regulatory limitations. What looks straightforward on a floor plan may reveal significant constraints once the property is evaluated. Skipping this step often leads to redesign, schedule delays, and cost overruns.

Assuming A Renovation Will Be Simpler Than New Construction

Renovations can be more complex than starting from scratch. Concealed conditions, existing occupants, hazardous materials, utility interruptions, historic features, and incomplete documentation are common challenges that require experienced planning and responsive management.

Focusing Only On Initial Cost

The lowest-cost material or construction type may not provide the best long-term value. Owners should evaluate durability, maintenance, energy use, fire protection, schedule, replacement costs, and operational impact alongside initial pricing.

Waiting Too Long To Involve The Construction Manager

Early contractor involvement helps identify constructability issues, cost risks, long-lead materials, phasing challenges, site access limitations, and alternative building methods before they become expensive problems.

How We Plan Different Construction Types At SCIC

Our approach begins with understanding the property, the client’s goals, the building’s current use, the intended future use, existing conditions, the applicable construction type, operational restrictions, budget, schedule, and safety requirements.

We know that selecting a construction approach is not simply a matter of choosing between wood, steel, and concrete. It requires a clear understanding of how the property will be used, who will occupy it, what regulations apply, and how the work will affect the client’s operations.

One Accountable Construction Partner

Our single-source model keeps design decisions, cost planning, scheduling, safety, procurement, construction, and communication connected throughout the project. Whether we are serving as a construction manager, general contractor, or design-build partner, one team remains accountable from planning through completion.

Experience Across Commercial Sectors

We bring decades of experience serving senior living, healthcare, education, hospitality, affordable housing, offices, retail, and historic properties. Our relevant services include property survey and assessment, preconstruction, design-build, construction management, general contracting, occupied renovation planning, and post-construction support.

Built Around Trust And Repeat Success

Since 1990, our year-to-year repeat business has consistently hovered around 90%. That number reflects family-founded leadership, decades of industry experience, a safety-first culture, and a commitment to minimal disruption and long-term client support. We operate across the East Coast with offices in Marion, Massachusetts, and Boca Raton, Florida.

The Right Construction Type Starts With The Right Planning

Construction types describe more than materials. They describe how a project is categorized—by scope, sector, building method, and code classification—and each category creates a distinct set of planning, design, and management requirements.

New construction, renovation, adaptive reuse, additions, build-outs, and occupied renovations each require a different approach. The International Building Code’s five types—Type I through Type V—reflect the fire resistance and combustibility of structural elements, from the highest-rated Type I to the more economical and combustible Type V. Budget, climate, sustainability, occupancy, square footage, and operational needs all shape which approach is right for a given project.

Early property assessments and construction management involvement can prevent costly surprises. Owners do not need to navigate these decisions alone.

At South Coast Improvement Company, we help clients evaluate the full picture before construction begins. By bringing planning, design coordination, budgeting, safety, and construction management together, we can create a project approach that supports both the building and the people who depend on it.

Start your project with confidence. Whether you are planning a new commercial building, occupied renovation, adaptive reuse project, addition, or interior improvement, our team can help you evaluate the property and create a customized construction plan. Request a free consultation.


Helpful Resources for Understanding Our Construction Services

Successful construction begins with informed decisions, clear communication, and the right team at every phase. At South Coast Improvement Company, we provide integrated services that help clients move from initial planning and property evaluation through design, construction, and closeout.

The resources below offer additional information about design-build services, preconstruction planning, construction management, and property survey and assessment services. They are especially helpful for owners and operators planning new construction, adaptive reuse, occupied renovations, infrastructure improvements, and capital upgrades.

Design + Build Services

Design-build brings design, engineering, and construction together under one contract. Instead of requiring the owner to coordinate separate designers and contractors, one integrated team manages the process from early concepts through construction. This structure encourages collaboration, improves accountability, and allows design and construction planning to overlap when appropriate.

Preconstruction Services

Preconstruction is the planning and coordination that happens before physical construction begins. It may include budget development, estimating, constructability reviews, schedule planning, phasing, logistics, subcontractor input, procurement planning, and risk analysis. Thorough preconstruction is especially important for occupied facilities and renovations where hidden conditions or operational requirements can affect the project.

Construction Management

Construction management provides professional oversight of a project’s schedule, cost, scope, quality, safety, and daily execution. Construction managers coordinate stakeholders, supervise field activities, manage subcontractors, monitor progress, document decisions, address risks, and help keep the work aligned with the owner’s expectations.

Property Survey & Assessment Services

Property survey and assessment services help owners understand a site or facility before making major construction or capital-planning decisions. Depending on the property and project scope, an assessment may examine building systems, physical deficiencies, immediate repair needs, future replacements, site conditions, operational performance, accessibility, environmental risks, and estimated capital costs.

Build With Greater Clarity and Confidence

Every project presents different goals, existing conditions, operational requirements, and risks. The right combination of assessment, preconstruction planning, project delivery, and construction management gives owners a clearer path forward.

At South Coast Improvement Company, we work as a true partner throughout the construction process. Whether you are considering a ground-up development, an adaptive reuse project, an occupied renovation, or a fast-turnaround capital improvement, our team helps you understand the property, establish a realistic plan, manage construction, and deliver the work with confidence.

Contact South Coast Improvement Company to discuss your upcoming project.

Frequently Asked Questions About Construction Types

What are the main types of construction projects?

Common project types include new construction, renovations, additions, commercial build-outs, adaptive reuse, occupied renovations, and capital improvements. Each type creates different requirements for planning, budgeting, scheduling, safety, and project management.

What are the five building construction types under the International Building Code?

The International Building Code identifies Type I, Type II, Type III, Type IV, and Type V construction. These classifications are based largely on the combustibility and fire resistance of structural building elements, including exterior walls, bearing walls, floor construction, roof construction, and the primary structural frame.

Which construction type has the highest fire resistance?

Type I construction generally has the highest required fire resistance ratings and uses noncombustible materials such as reinforced concrete and protected structural steel. Type I-A requires a three-hour fire resistance rating for exterior walls, and Type I-B requires a two-hour rating for structural frames.

What is Type II-B construction, and where is it commonly used?

Type II-B construction uses noncombustible materials such as steel and concrete but generally does not require a fire resistance rating for major structural elements. It is often used for strip malls, retail buildings, warehouses, and one-story commercial properties. Other fire protection and life-safety requirements still apply.

Why is Type III construction called ordinary construction?

Type III is commonly called ordinary construction because it traditionally combines noncombustible exterior walls—such as brick or masonry—with combustible interior framing. This combination was historically common in mid-rise commercial and mixed-use buildings, particularly in older urban districts.

What is heavy timber construction, and how does it resist fire?

Heavy timber construction uses large solid or laminated wood structural members. When exposed to fire, the exterior of the member develops a char layer that slows the rate of burning, while the interior portion may retain structural integrity for a period of time. Traditional Type IV construction uses minimum member sizes, including columns that may be at least eight inches in dimension.

What is the difference between Type V-A and Type V-B construction?

Type V-A includes protected combustible construction with required fire resistance ratings for certain building elements. Type V-B generally does not require a fire resistance rating for the primary structural frame or major structural components, making it the least stringent classification in terms of structural fire resistance. Type V construction is common in single-family residential homes and smaller low-rise structures.

What is the difference between a renovation and adaptive reuse?

A renovation updates or improves an existing property while generally maintaining its current purpose. Adaptive reuse converts the property to a different use—such as turning an office building into housing or a historic retail property into a healthcare facility. Changing a building’s use may trigger new regulatory requirements even when the same construction type remains in place.

How does an occupied renovation differ from a standard renovation?

An occupied renovation takes place while residents, employees, patients, students, guests, or customers remain in the building. It requires additional planning for safety, access, phasing, dust and noise controls, utility shutdowns, and business continuity—significantly increasing the coordination demands on the construction manager.

Who determines a building’s construction type?

The building designer and code team determine the applicable construction type based on the building’s materials, structural systems, occupancy, size, height, and current building-code requirements. Local code officials review the classification during permitting. The specific code edition and any local amendments must always be confirmed by qualified professionals before planning begins.

 

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